Chamwe Kaira
The Central Procurement Board of Namibia says it is dealing with the government’s decision to cancel TransNamib’s plan to buy 23 new locomotives for N$1.7 billion.
Johanna Kambala, Manager of Stakeholder Relations at the board, said the matter is sensitive and the board will respond to questions at an appropriate time.
Minister of Works and Transport Veikko Nekundi confirmed that the locomotive tender had been cancelled due to concerns over sourcing from a single supplier. He said TransNamib now needs to come up with new timelines for the locomotive purchase.
Earlier this year, TransNamib announced plans to buy General Electric locomotives as part of the fleet standardisation process. The purchase formed part of a N$2.5 billion loan the company received from the Development Bank of Southern Africa and the Development Bank of Namibia.
But Nekundi said the government was against the direct procurement of locomotives from a single manufacturer. He said Namibia’s interests must come first and that relying on one foreign supplier posed a risk.
Nekundi said in the meantime, TransNamib is expediting the refurbishing programme of its old locomotives.
He added TransNamib has been instructed to inform the Central Procurement Board of Namibia that a new tender process will now be launched in line with public procurement laws. The new process will open bids to multiple suppliers and explore different options for efficient locomotives suited to Namibia’s climate.
TransNamib is also working with the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa to decide on the way forward.
In the meantime, Nekundi said TransNamib is speeding up the refurbishment of its old locomotives.
Under the same loan, TransNamib plans to upgrade its mechanical and heavy-duty equipment, steam boilers, and tools, and also purchase 300 wagons.
